MutualFundWire.com: Alternative Bond Funds Are Fast Growers ... Until Now
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Wednesday, December 07, 2011

Alternative Bond Funds Are Fast Growers ... Until Now


Go anywhere funds are going to the wrong places. So writes Charles Stein for Bloomberg Business Week. Stein focuses on Pimco's [profile] Unconstrained Bond Fund, the biggest "go-anywhere" fund that holds $15.5 billion in AUM and JP Morgan's Strategic Income Opportunities Fund.

All counted the category has gathered some $55 billion in AUM since the 2008 financial crisis when the category held just $2.8 billion. That total includes net flows of $13.7 billion through July of this year along with $27.6 billion in 2010 and $9.2 billion in 2009.

Pimco and JPMorgan's funds are the two biggest mutual funds in the category and both are down for the year after missing the boom in the market for U.S. Treasuries, according to the report. Still, both funds are ahead of their peers as tracked by Morningstar and along with Eaton Vance's [profile] Global Macro Absolute Return Fund are among the top 10 selling mutual funds.

Alternative bond mutual funds' popularity has slipped as of late. In the three months ending in October, shareholders have pulled nearly $4 billion from non-traditional bond funds in the wake of the recent slip in the bond market.


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